Enthusiasm Strong At Dedication Of Rolling Mill

June 17, 1988|by PAUL WIRTH, The Morning Call

Workers at Bethlehem Steel Corp.'s local plant, tired of all the gloom-and- doom talk about their future, went on the offensive yesterday by dedicating a new rolling mill and warning the competition not to counttheir I-beams before they're hatched.

The $50 million mill modernization project was delayed twice, and almost got scrapped when financial times were tough. But plant officials found the money to do the job, just in time to supply the current boom steel market and to give the mill a fighting chance in the critical competitive challenge of the future.

Several hundred steel workers in greasy work clothes mingled with business-suited politicians and company executives inside a steamy mill building to christen the new equipment. Plant bosses and union leaders boasted that the Bethlehem Plant makes the best steel in the world, and elected officials fueled the optimism with upbeat speeches.

But top union and company officials acknowledge that the new mill equipment by itself won't be enough to prevent the plant from losing business to a tough new competitor about to enter the market. Nucor Corp.'s Arkansas mini-mill could steal a significant portion of the Bethlehem Plant's sales, according to analysts, union officials and company executives.

The modernization "couldn't have come at a better time," said Andrew Futchko, manager of Bethlehem Plant operations. He said the plant's order book is crammed and said the new equipment "gives this plant the capability of rolling the total family" of beams.

Futchko praised the work crews who labored around the clock to install the mill in only 20 days, minimizing the plant's down time and lost business. The paint on yellow lines hastily laid down to keep visitors away from heavy equipment yesterday was still wet.

"The Bethlehem Plant is going to be facing some pretty stiff competition," said Roger Penny, senior vice president of steel operations. "We're not ready to roll over and play dead for these guys. The Bethlehem Plant makes the best structural steel available anywhere today."

But in private conversations, Penny and other company officials aren't so optimistic. Penny acknowledged in a recent interview that the future of the plant, the largest producer of beams for bridges and buildings in the nation, could bring shutdowns and layoffs if costs cannot be reduced enough.

"When we get down the road, survival will be the name of the game," Penny told The Morning Call. He said mini-mill competition, coupled with a steady decline in the market for structural steel - the plant's main product - may mean that the steelmaking portion of the 4,800-employee plant will close.

Union leaders say they are happy the $50 million was spent, but Marvin Peters, the top union official at the plant, said the company must modernize the rest of the 1908-vintage rolling mill to be competitive.

Company officials say many minor projects are ongoing, but no major updates are planned. The plant is spending about $20 million in modernization this year, in addition to the rolling mill facelift.

Nucor will have a $100-per-ton cost advantage, and the mini-mill is willing to cut prices to gain market share. Bethlehem plant officials say they may not be able to slice $100 out of their costs, but say their high quality, extra service and strong customer loyalty will give Nucor a run for its money.

"I'm not worried about Nucor," said a confident Jeff Manty, a 40-year- old Bushkill Township resident who is superintendent of the plant's 48-inch rolling mill. "We're going to get a market niche, and we're always going to be here. I'm going to take care of my loyal customers."

Manty said the new mill equipment will cut down on rolling time, reduce production costs, and boost quality. It won't lower costs by $100 per ton, he said, but the mill will enhance the plant's overall competitiveness.

"The non-union mini-mills are out to eat our lunch,"said Emilio "Chico" Curzi, head of the plant union local in the rolling mill area. "I can guarantee you that the work force of this plant is determined to keep Bethlehem Steel in the forefront of structural steel production in this country."